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On the Money With Maria Bartiromo

News/Business. (2013) Michael Santoli, Yahoo! Finance; Jonathan Golub, UBS; Mitch Silber, K2 Intelligence; Frank Bennack, Hearst Corp. New. (CC) (Stereo)

NETWORK
NBC

DURATION
00:30:00

RATING
PG

SCANNED IN
San Francisco, CA, USA

SOURCE
Comcast Cable

TUNER
Channel 23 (219 MHz)

VIDEO CODEC
mpeg2video

AUDIO CODEC
ac3

PIXEL WIDTH
1920

PIXEL HEIGHT
1080

TOPIC FREQUENCY

Us 15, Boston 9, Ubs 5, Jonathan Golub 2, Mike Santoli 2, Mitch Ilber 2, Bob Woodward 2, Washington 2, Fbi 2, New York 2, Hearst 2, America 2, Frank Bennack 2, Abc 1, Espn 1, Leslie Iwerks 1, Apple 1, Kkerrrrbbuuuuuucraaackkk 1, Randolph 1, Larry Fink 1,
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  NBC    On the Money With Maria Bartiromo    News/Business.  (2013) Michael Santoli, Yahoo! Finance;  
   Jonathan Golub, UBS; Mitch Silber, K2 Intelligence; Frank...  

    April 21, 2013
    4:00 - 4:30pm PDT  

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he told me about the challenges inherent in a unified european economy, part of the conversation this week. >> vastly different social security systems, pension systems, health care systems. if europe wants to move to more common funding of these systems is, which is one of the options at the end of the fiscal union, then they need to harmonize the systems before they move to a fiscal union. if you're talk:00 the common fiscal policy or a fiscal union, it's a decade or more off. >> we had in washington this week, what are your thoughts in terms of how the banks look in the next couple of years? are they going to be forced to sell assets and separate plain vanilla deposit businesses from investment bank, capital markets business? >> the issue is going to be going forward, even if you're well capitalized, can you resolve a bank, even a large bank if it runs into problems. and there i've seen some recent debates among the regulators, and the mood seems to have swung from having very sophisticated
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systems of separating these to simply say since it will be very difficult, let's just embark on the general road that we ask a lot more capital. so a big part of the new banking regulation will actually be quite stanley higher capital than even what was agreed upon. and the second one is banks need to make sure they can be resolvable. >> you've got to believe that ubs at this point is one of the leaders in terms of capital based on basel 3 rules. you've been deleveraging for a while now. >> we have. and we will under the strategy until 2015 reduce the balance sheet from $900 billion to 600 billion. the future will be one where we focus on what ubs can do best and that is global wealth management. >> my thanks to axel webber of ubs. joining me this week, another name from ubs, jonathan golub, chief equity strategist at ubs and mike santoli, senior
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columnist atia hao finance. gentlemen, good to see you. thank you so much for joining us today. mike, what a rough week. in addition to all of the news surrounding the boston marathon, we've got sell-offs in gold, other commodities. put this all into perspective for us as we look ahead toward next week. what has investors so concerned? >> it seems like we're in the midst of another economic growth scare. it's almost right on schedule in the spring of the last few years. each year we've had one of these things. it's taken the tone of the deflationary force, deflation examinati expectations are way down. companies reporting earnings that in large part are kind of reaching estimates, but they're not saying they have very strong demand growth. revenue growth is pretty slow. so it's been a choppy period, especially the outlook for the second half of the year where we were supposed to be getting an economic growth acceleration. >> jonathan, clearly shocking events this week around boston, the bombings. now those bombings were reported monday during what had already
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been the worst drop for stocks of the year. things worsened after that. so as an investor, what impact do these unforeseen tragic events have on confidence, uncertainty, and how do you navigate that? >> i, you know, this is a personal tragedy. and i think as americans, we feel horrible about this and our hearts go out to the people of boston, the families. but at the end of the day, this really is not a market event. it's possible that we'll find out more it is part of something more sinister, but it doesn't appear to be. the markets selling off really for the reasons that mike laid out. the fundamentals haven't really been there to support the run. but now you are getting a growth scare. and the data is coming in, the economic news is really telling you that things are slowing down a bit, and the market is responding. >> so would you advise clients then in that scenario to take some money off the table? do you want to diversify out of stocks, or just look long-term and not worry about the short-term issues? >> i think everything really is about time frames. so if you said to me you're a
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two or three-year investor, stocks are going to be higher going forward, the pace may be slower than you like it to be, but you're fine. if you're trying to pick an entry point, do i think you'll do better in six weeks or eight weeks or ten weeks from now? probably. and i would let this flesh out this little bit of slowness that we're seeing and then decide when to get back in. >> okay. because maybe we'll see a sell-off getting an opportunity for investors to come in at lower prices. >> and i think you will. >> and you think we will. so earnings season, mike. a lot of companies beating earnings examinations. of course, the revenue has been slow, as you just said. >> for a sure. >> what does the first quarter reports tell us so far about the rest of the year? any indication from your standpoint in terms of the health of corporate america and the guidance that has been given? >> financially, corporate america is extremely healthy. in terms of balance sheets and terms of how they're running their businesses very lean. but i do think in the back half of the year, especially the global companies are basically saying there isn't really a go-to region that is going to be carrying us for the next several months. you saw some warnings among the big companies. obviously europe is back in
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recession. i feel like the companies are doing what they, but profit margins are already so high that they've kind of, you know, gotten all the change from out of the couch cushions and everything to make their numbers. it's not as if they have the organic growth that they can rely on. >> earlier this week i spoke with larry fink, the ceo of blackrock, the world's largest money manager. it really is the asset managers, the money management companies that are doing very well because of this market being so strong. but listen to what he said in terms of the backdrop for this market. take a listen. >> corporate earnings so far, about 85% of the companies reporting exceeded estimations. it's an indication of a stronger economy. if somebody told me we were going to have a 5% correction, i would say look at that as an opportunity to get into the market. >> which is basically what you just said, jonathan, right? >> yeah. i do think that larry's perhaps a little bit too optimistic on things. the companies are beating this quarter, but they're actually
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missing their revenue estimates. and if you take out financials because of, you know, special -- some things are specific to their sector, you really are seeing negative earnings growth compared to not the prior quarter, but compared to a full year ago. so things are weak. domestic companies are doing much better than companies with big global footprints. >> mike, what are you expecting from the week ahead? we've got more heavy earnings numbers coming out. a big group of companies this week, and we've got the gdp report at the end of the week. >> yeah. i do think actually for that reason it's probably going to be a lot more chop in the market. a lot of two-way actions. very company specific. i do think we have to get a little bit of clarity on whether companies feel as if this is just a little bit of a rough patch and we're going to pick up on the back end. i also think there is an interesting wrinkle below the surface of the markets. most stocks have gone down more than 5% already, even though the indexes were only down less than that. so i feel like the question's going to be if we actually get through this period of slowdown, of perceived slowdown, whether the companies that are very
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globally or cyclically sensitive are kind of baking in that weakness, and they might actually be taking the baton for the next phase in the summer let's say. >> all right, we'll leave there it. gentleman, great to talk with you. we appreciate it. mike santoli, jonathan golub. stay with us. we'll be talking about security following the boston bombing. a security expert formally with the nypd will join me next. and when so many businesses are shedding staff and pages,he ceo of the hearst organization is investing what you read. we'll be right back. ♪ alright, let's go.
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♪ shimmy, shimmy chocolate. ♪ we, we chocolate cross over. ♪ yeah, we chocolate cross over. ♪ [ male announcer ] introducing fiber one 80 calorie chocolate cereal. ♪ chocolate. ♪ the one and only, cheerios the bombing at the boston marathon and the subsequent investigation has brought security concerns once again to the forefront for all of us. joining me now to talk about the event's impact is mitch ilber of k2 intelligence and investigative and risk analytics consulting firm, founded by jewels crowle of crowle
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security, pioneer of the investigations industry. previously mitch supervised the nypd's ongoing terrorism related activities as a director. mitch, it's wonderful to have you on the program. thanks for spending the time. >> thank you. >> after handling counterterrorism efforts for the nypd, give me your thoughts on what happened friday first. let's go back. that shoot-out with one of the two suspects, both brothers, and then shutting down the entire city of boston, locked down. what can you tell us? >> well, what likely happened as of late thursday is the fbi and the investigation hit some roadblocks. so they weren't sure which way to go. and one route to go is to put pictures out of the particular individuals. and that may in fact have smoked these two individuals out, caused them to take some action. >> so what is your thought? what is your thought in terms of these two individuals? i mean, we know that this is not necessarily, you know, international terrorism. is it home-grown? what do you glean from what we know about these two individuals? >> i think what we know so far is that they're likely to have
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radicalized here in the united states, having come here as refugees in a sense from the chechnyan conflict. it seems like they are in the boston area for an excess of ten years. so it's likely that their radicalization, their turn to violence happened there. and the question, what we'll be exploring over the next few weeks will be what triggered that? why did they turn against the country that took them in? >> do most major cities have the resources that they need to combat terrorism? >> you know, most major cities are reliant on the fbi and the joint terrorism task force as really the sole elements focusing on terrorism in their cities. new york city has a bit of a luxury in the sense that the mayor and the police commissioner have devoted an effort to have an additional sort of indigenous effort by the nypd to compliment what the federal government is doing. so new york is unique, but most other cities are getting help from the federal government. >> what would you say happens
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next in terms of the way this country operates differently as it relates to security? i mean now that we know, you know, what has taken place in boston, we have zeroed in on the perpetrators and obviously looking for more accomplices. how would things change on a security level for the country going forward now? >> i think one of the things that we're going to see is people questioning once this gets resolved, you know, were there any signs that anyone could have detected at an earlier basis that would have given us a heads up that this was coming. was there suspicious travel? were there friends or family that saw these two individuals and the rest of the group potentially radicalized and changed. that's one of the things that people explore. and depending on what the answers will affect potential changes in security. >> the video and the cameras have been so important to this. i mean, just getting the public engaged, sending in their videos from their cameras and what have you.
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but there is so much data. how do you sift through it all? what is going on now in terms of those, the powers that be looking through all of this video and data that we have? >> yeah, it's frankly a big data problem. and what is happening is that you've got analysts who are sifting through all of this digital video on these individuals. there are new tools that have come out that allow you to search for particular criteria, color of a shirt, a color of a bag, things like that that might make you more efficient than doing it manually. but this is a place where the government has invested a tremendous amount of investment in two analytic tools that can cut through big data and bring you to anomalous behavior or other types of information that can give you that need until the haystack. >> is there anything based on what we know right now that leads you to understand better the core of why this happened and who is associated with this? >> well, i think understanding a little bit about their ethnic heritage suggests that chechnya
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was an important part one way or another in their turn to violence. the fact they didn't put out a statement claiming responsibility and saying in who's name they carried this out, you know, it will still leave some question. >> mitch, good to have you on the program. >> thank you so much. >> thank you so much for joining us, mitch ilber here. up next on "on the money," will the printing industry have to stop the presses? how your changing [ male announcer ] so you used the wrong flea killer.
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as more news and information is delivered digitally, does it stop the presses for the traditional print industry? my next guest says consumers still want to read all about it online and in print. frank bennack is ceo of the hearst corporation. frank, it's good to have you on the program. >> good to be here, maria. >> you have been at the helm of the hearst corporation for 50 plus years. >> i've been there for 50 years. i've been at the helm for 28 of those. >> 28. but you've been at hearst more than 50 years? >> that's right. >> congratulations on that amazing tenure at one company. tell me what you see in that 50-plus years, how the world has changed. what is most striking? >> well, the first time i was ceo, because i've had two tenures, actually. one was 23 years, and i retired. i flunked retirement and they brought me back, and this tenure is five years. and the dramatic difference between that first 28 and five is something i often talk about. and the big debate that i hear
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and that is in my own mind is what was the biggest change? everybody wants to know that. >> yeah. >> and i still have to go with television being a bigger change in the world and in our lives than digital. now digital may become that. we're still in the third inning, let's say, of the digital revolution. >> i would have to tend to agree. television was a bigger phenomenon than digital at the time. >> worldwide, right. and still on the impact on our lives, and people are still watching more television than ever before, despite the digital revolution. >> is print media dead? >> no. by no means. the way it's delivered is changing dramatically, obviously. i think ink on paper, which is still a part of our business, although a minority part of our business, will be with us as far as the eye can see. but we will be delivering what you and i know as print on ipads and different platforms as far as anybody can imagine.
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still powerful. >> it's very powerful. pardon me. but i think it's really interesting that you're basically doubling down on print, investing $15 million in an actual printing press in albany, new york. >> that's right. >> you own probably the only paper in the world actually buying a printing press at a time when newspapers are cutting back on staff. they're cutting back on additions, some closing down entirely. 10 who are you trying to reach, and how long will those readers be around? >> we still believe that the most affluent and the most educate to have had population want to consume print. and many of them still like it the old-fashioned way. others, the more affluent, of course, have a variety of ways they receive it. they take it at home, ink on paper, they take it on their ipad. they now take it on their cell phone so that the medium itself is a long way from being over. >> obviously hearst publishes more than 300 magazines globally, but your company's portfolio is diverse. $9 billion in revenue last year.
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you also own buzzfeed, after of the ratings agency and television interests. so tell me how you see the business changing. >> well, part of our success has been the fact that we've diversified many of our contemporary companies. remember, we're 125 years old. stayed too long at one stand. our strategy was diversify, become more electronic. that led us to go from three television stations to 29 television stations, to launch with abc what is now a & e, history, lifetime, all of those cable networks. we invested in espn. so that diversification meant that we were not too reliant on any one product. and so combination of acquisitions and new starts built a company that is today about 15 times, maybe larger than when i became ceo, and about 30 times more profitable. >> and you've got documentary based on hearst, the 125th anniversary premiering on the
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bio channel april 23rd. that's giving the perspective on the life of the founder of william randolph hearst. >> in the 25th year, we asked an award winning producer, leslie iwerks to do a documentary. we gave her complete latitude to tell the story the way she wanted to tell it. and she has done a nearly two-hour documentary that is a history of the company, including the last 30 or 40 years that i've been around. >> we'll be watching. good to have you on the program. >> thank you. >> congratulations. what a phenomenal career. >> thank you. >> and you've seen so much. frank bennack joining us, ceo of hearst. up next, a look at the news this upcoming week that will have an impact on "on the money." as we take a break, take a look at how the stock market ended the week. back in a moment.
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. for more "on the money," check out the website, otm.cnbc.com. first the stories that may impact your money this week. the heaviest week yet for earnings on the first quarter. on deck apple, netflix, at&t, sprint, exxonmobil and chevron. also watch for caterpillar, boeing, ford motor, procter & gamble, and ups, among others.
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all of those may very well set the tone for the markets. on monday millions will go green in celebration of earth day. also on monday, march's existing home sales released followed by the new homes sales report on tuesday. thursday is the dedication of the george w. bush presidential center at southern methodist university. and on friday, we will get the gross domestic product report for the first quarter, gdp typically a market mover that measures the market's total economic output. that will do it for us today. thank you so much for being with me. next week we have a special episode for you with the technology leaders who are changing today's economy. i'm giving them a seat at the table. >> that's a grea quote. trust is the new currency of the new economy. >> we'll bring that to you next week. have a great week, everyone, and i'll see you next weekend.
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pillsbury toaster strudel. if beethoven made breakfast. [ female announcer ] in just 60 seconds, you can't get more italian. it's on. let's roll. >> this is is the chris matthews show. >> ask not what your country can do for you. >> tear down this wall. i can hear you. >> the time for change has come. chris: again, boston's american tragedies is our latest national nightmare but it comes out almost out of nowhere. we know we have enemy who is hate us. but we don't understand what it's all about. carry on -- an event nearly impossible to secure forces changes to the american life.
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will monuments become so restricted that the enemies stpwhin and watergate revolution. it's 40 years since bob woodward were following the money on a story that drove nixon from office. will the same thing happen today? with us today from "the washington post," bob woodward, cbs' lesley stahl, gloria borger from cnn and michael duffy from time magazine. for nearly 12 years americans have had a full awareness that enemies are dedicated to hitting us. we dedicate ourselves to carrying on to stiffening our resolve as the president said thursday. >> we may be momentarily knocked off our feet. but we'll pick ourselves up. we'll keep going. we will finish the race. chris: and our resilience isn't
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just rhetoric. we haven't seen evidence that worries about threats intimidate americans from carrying on. here is the way condoleeza rice expressed it to you on "60 minutes" back then. >> we had an event on september 11th that has changed the way we think about security. that can't be ignored. the fact is that we are more aware of the vulnerabilities of an open society. but we simply can't let the terrorists win. chris: maybe we don't get hit that often. that's a nice picture, by the way. is theory about the american resilience and our national character. >> we do find a sense of equilibrium. but life isn't nothing the way it was before 9/11. i even go back when ronald reagan was shot. we live under unbelievable restrictions and they have changed the way we